Audit Service Center of China National Audit Office for Foreign Loan and Assistance Projects Audit Report *kF‡tr [2020 J 13 AUDIT REPORT [2020 ] NO.13 Project Name: GEF Capacity Strengthening for Implementation of Minamata Convention on Mercury Project in China 9i ok Äl-: TF0A3066 Grant No.: TF0A3066 Proj ect Entity: Foreign Environmental Cooperation Center, Ministry of Ecology and Environment i : 41- 2019 Accounting Year: 2019 目录 ContentS 一、审计师意见．........................................．……，二，.....．……，.................．……1 1 .Auditor&5 Op恤ion...........................．……，,．…，．…，．…，,,．。。，.．…，,,，二，…，二，,．……3 二、财务报表及财务报表附注．.........．……，............．……，…，................．……5 11 .Financial St威emeflts and Notes to the Financial Statements........．……5 （一）资金平衡表．..．……，.．…，.．……，.，二‘，二，.,,，·，··，·，，····，,，·，·，，·，·，，··，···一5 1 .Balance Sheet......................................................．……，……，.．……，．…，…5 （二）项目进度表．.......................................................................．……6 11.Summary ofsources andUsesofFundsbyProject.....．……，…，.，二，,.,6 （三）赠款协定执行情况表．..................................................．……，.,8 111 .Statemellt oflmPlementation ofGrantAgreement..................．……8 （四）专用账户收支表．...........................................................．……，…9 扮．SpecialAcc。讯It Stateme爪．…，,...........．……卜．.......................．……，.．…9 （五）财务报表附注．，…，,．…，二，,,..........．……，.．……，......................．……10 vi .Notes to the Financial Statelnent........．……，…，二，...．……，...........．……13 三、审计发现的问题及建议，…，.,......．……，..．……，.............................．……17 111.Audit Findings and Recommendations．……，.,,，…，,，二，，…，..............．……拐 一、审计师意见 审计师意见 生态环境部对外合作与交流中心： 我们审计了全球环境基金赠款中国履行《关于汞的水误公约》能 力建设项目2019年12月31日的资金平衡表，以及截至该日同年度 的项目进度表、赠款协定执行情况明细表和专用账户收支表等特定目 的财务报表及财务报表附注（第5页至第16页）。 （一）项目执行单位对财务报表的责任 簖制上述财务报表是你单位的责任，这种责任包括： 1，按照中国的会计准则、会计制度和本项目赠款协定的要求编 制项目财务报表，并使其实现公允反映； 2．设计、执行和维护必要的内部控制，以使项目财务报表不存 在由于舞弊或错误而导致的重大错报。 （二）审计责任 我们的责任是在执行审计工作的基础上对财务报表发表审计意 见。我们按照中国国家审计准则和国际审计准则的规定执行了审计工 作，上述准则要求我们遵守审计职业要求，计划和执行审计工作以对 项目财务报表是否不存在重大错报获取合理保证。 为获取有关财务报表金额和披露信息的有关证据，我们实施了必 要的审计程序。我们运用职业判断选择审计程序，这些程序包括对由 于舞弊或错误导致的财务报表重大错报风险的评估。在进行风险评估 时，为了设计恰当的审计程序，我们考虑了与财务报表相关的内部控 制，但目的并非对内部控制的有效性发表意见。审计工作还包括评价 所选用会计政策的恰当性和作出会计估计的合理性，以及评价财务报 表的总体列报。 我们相信，我们获取的审计证据是适当的、充分的，为发表审计 意见提供了基础。 1 （三）审计意见 我们认为，第一段所列财务报表在所有重大方面按照中国的会计 准则、会计制度和本项目赠款协定的要求编制，公允反映了全球环境 基金赠款中国履行《关于汞的水误公约》能力建设项目2019年12月 31日的财务状况，以及截至该日同年度的财务收支、项目执行和专 用账户收支情况。 （四）其他事项 我们还审查了本期内报送给世界银行的第8至10号提款申请书 及所附资料。我们认为，这些资料均符合赠款协议的要求，可以作为 申请提款的依据。 本审计师意见之后，共同构成审计报告的还有两项内容：财务报 表及财务报表附注、审计发现的问题及建议。 澎醉部履溉物瓶 、人欣墩茹厅儿 ’火铸洲．了）厂擞 复、个－一泛多 审计籲国外贷援漱项目审计月麟才心 2020学戏月12日伙岁 一蕊娜尹／ 地址：中国北京市海淀区中关村南大街4号 邮政簖码：100086 电话：86一10一62 1 50750 2 1. Auditor's Opinion Auditor's Opinion To Foreign Environmental Cooperation Center We have audited the special purpose financial statements (from Page 5 to Page 16) of the GEF Capacity Strengthening for Implementation of Minamata Convention on Mercury Project in China which comprise the Balance Sheet as of December 31, 2019, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Grant Agreement and the Special Account Statement for the year then ended, and Notes to the Financial Statements. Project Entity's Responsibility for the Financial Statements The preparation of the financial statements mentioned above is the responsibility of your entity, which includes: i. Preparing and fair presenting the accompanying financial statements in accordance with Chinese accountina standards and system, and the requirements of the project grant agreement; ii. Designing, implementing and maintaining necessary internal control to ensure that the financial statements are free -fi-om material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Government Auditing Standards of the People's Republic of China and International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fi-aud or error. In making, those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the 3 purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is appropriate and sufficient to provide a basis for our audit opinion. Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, financial position of the GEF Capacity Strengthening for Implementation of Minamata Convention on Mercury Project in China as of December 31, 2019, its financial receipts and disbursements, the project implementation and the receipts and disbursements of the special account for the year then ended in accordance with Chinese accounting standards and system, and the requirements of the project grant agreement. Other Matter We also examined the withdrawal applications from No.8 to No. 10 and the attached documents submitted to the World Bank during the period. In our opinion, those documents comply with the grant agreement and can serve as basis for grant withdrawal. The audit report consists of the Auditor's Opinion and two more parts hereinafter: Financial Statements and Note& inancial Statements, Audit Findings and Recommendations. 4 k , Audit Service Center of China NaiiW@ AfditY)ffi&>fot Foreign Loan and Assistance Projects ' June 12, 2020 Address: No. 4 Zhongguancun South AveO8Mdian District, Beijing, P.R.China Posteode: 100086 Tel.: 86-10-62150750 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. 4 II. Financial Statements and Notes to the Financial Statements i. Balance Sheet BALANCE SHEET 2019 4 12 ) 31 H (As of December 31, 2019) 4 : g5f AA-J& Aig A TRyJtA@}AfJgf R.Uk% TF0A3066 Name of the Project: GEF Capacity Strengthening for Implementation of Grant No.: TF0A3066 Minamata Convention on Mercury Project in China Entity Name: Foreign Environmental Cooperation Center Currency Unit: RMB Yuan 5Ef1t1 &Mfl M;WR PA3w971gMM M*-e Application of Fund Beginning Ending Total Sources of Ending Ending Balance Balance Fund Balance Balance A03Di,tiI- -nTAX9E Total Project 4,186,545.67 13,287,659.68 800,000.00 1,121,851.50 Expenditures ceie Received Fixed Assets 7,780,399.21 15,679,677.33 Transferred Construction 3. N 8,272.14 244,500.00 Expenditures to be Total Payable Disposed 3Miltitr 2q tZfi Investments Other Payable Transferred-out 4. E - I-T Construction in 4,186,545.67 13.287,659.68 Other Fund Progress , Equipment Retained Earnings including:Equipment Losses in Suspense a Ch an Bk 4,402,125.68 3,758,369.15 - Total Cash and Bank Cash in B VA)4.402,125.68 3,758,369.15 - - Cash in Bank A Includi ng:Special 4,363,907.18 3,758,369.15 - Account Cash on Hand Rfl, ilUar±Vk2V Total Prepaid and Receivable Total Fixed Assets Total Application of 8,588,671.35 17, 046, 028. 83 Total Sources of 8,588,671.35 17, 046, 028. 83 Fund Fund 5 (in ) 3A AI ii. Summary of Sources and Uses of Funds by Project * PnA& (-) SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I t) ;1.4E 2019 * 12 A 31 B (For the Period Ended December 31,2019) Name of the Project: GEF Capacity Strengthening for Implementation of Grant No.: TF0A3066 Minamata Convention on Mercury Project in China 1-#*t1: 'Y'-k A r *ift: F R &5L Entity Name: Foreign Environmental Cooperation Center Currency Unit: RMB Yuan Current Period Cumulative Current lj31 * P.iFiAm Cumulative Current year Current ped ife f Cumulative Budget Period Actual Actual completed completed - 8,221,129.62 - 105,440,000.00 16,801,528.83 15.93% Total Sources of Fund - 7,899,278.12 - 52,720,000.00 15,679,677.33 29.74% International Financing 1 3 1 r - 7,899,278.12 - 52,720,000.00 15,679,677.33 29.74% IBRD 'Rp Finan - 321,851.50 - 52,720,000.00 1,121,851.50 2.13% Counterpart Financmng Total Application of - 9,101,114.01 - 105,440,000.00 13,287,659.68 12.60% Funds 11 iI i M K tl i I. i1k Development of National - 7,837,933.87 - 25,371,500.00 10,898,094.64 42.95% Strategy and Sectoral and Provincial Action Plans 2.A7t6IP.LUfP Lt4A8 4 Capacity Strengthening for - 1,087,061.50 - 77,103,000.00 1,972,881.45 2.56% Mercury Management and Risk Assessment P A a n R- 176,118.64 - 2,965,500.00 416,683.59 14.05% ProJect Management -- Difference - -879,984.39 - - 3,513,869.15 1 .<tA{t Change in Receivables Change in Payable - -236,227.86 - - -244,500.00 3.f1122T Change in Cash and Bank - -643,756.53 - - 3,758,369.15 4.-4 LI Other 6 1 1 1 f в�: и р г� `�, � Э � 4[�Н` � � о о �К � � � � о о � � �,� � � � � F �-�г F-� F- -� •� н j � ,• О'� � � и Э Э i Э � 4�Э' z �- � ш � � � � � мН � F� � ��� � � � >� � �-° С,� t�'-�� (� � i ь. 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Special Account Statement * M SPECIAL ACCOUNT STATEMENT ,t,J rk -:F 2019 * 12 A 31 S (For the period ended December 31, 2019) MR It X -a 33i ff Project Name: G EF Capacity Strengthening for Implementation Depository Bank: China Minsheng Banking of Minamata Convention on Mercury Project in China Cooperation, Beijing Finance Street Branch. )V 13 ;,It _V : TFOA3066 PLF : 697933122 Grant No.: TFOA3066 Account No: 697933122 Prepared by., Foreign Environmental C2 peration Center Currency unit: USD JM N (item) I : kg (Amount) Part A-Account Activity for the period (2019/l/1) Beginning balance (Jan/l/2019) 635,841.47 1HIJ add: *-A- LHY t-R bl FE *AMT Total amount deposited by World Bank 1,113,955.56 *wjf-d Q' Ilk 772W 243.34 Total interest earned this period if deposited in Special Account Total amount refunded to cover incliLaible.expenditures A ,IN Deduct: *NA 4J',S M Total amount withdrawn 1,211,298.77 *WV21jUU.0..P), Total interest transferred out of the Special Account - 01(2019/12/3 1) Ending balance(Dec.31,2019) 538,741.60 B JA3Y - 1 10KP i9 V Part B-Account Reconciliation i. lk-Y VQJT-9 f 4,TX.0_V1, Amount advanced by World Bank 800,000.00 Deduct: 2. ftJTMJT Total arnount recovered by World Bank - 3 4,- Y1 M Z Kz P 1 & Y4E RX 4 j 0 800,000-00 Outstanding arnount advanced to the Special Account at Dec/31/2019 (2019/12/31) End balance of Special Account at 538,741.60 Dec,31,2019 AMI[l add: 5. Amount claimed but not yet credited atDec,31,2019, FNIM-r-W! Application No Amount 6. U 262,081.74 Amount withdrawn but yet claimed 7. OU *4E 5 *H 6 Accumulative service charges (if not included in item 5.or 6.) A ,11 deduct: S. fij.S&A (TYAI MWU 1503 ) 823.34 Interest earned (if included in Special Account) 9. 800,000.00 Total advance to Special Account accounted for at Dec,31,2019 9 （五）财务报表附注 财务报表附注 1．项目基本情况 项目全称为全球环境基金中国履行《水误公约》能力建设项目。 项目赠款协议于2016年11月14日由国际复兴开发银行（简称“世 界银行”）与中华人民共和国财政部（简称“财政部”）共同签署。 根据财政部与生态环境部（原环境保护部）签署的赠款执行协议，生 态环境部对外合作与交流中心（原环境保护部环境保护对外合作中 心）（简称“对外合作与交流中心”）负责赠款的使用、管理和监督。 该项目目标为：l）簖制中国履约国家战略及相关行动计划；2）提高 中国履行《水误公约》的能力及试点省市实施履约战略的能力。项目 主要活动包括：拟通过开展相关调查、监测和战略制定等活动，制定 分行业汞削减淘汰战略和行动计划，汇总完成中国履约国家战略和行 动计划的簖制，并在试点省市开展汞流向报告制度、含汞污染场地风 险评估、含汞废物回收处籮技术可行性研究、大气汞监测能力提高和 成果宣传等试点活动，以提高试点省份和国家的履约能力。项目计划 资金总额1600万粎元（折合人民币10544万元），其中赠款资金800 万粎元。扼诺配套资金800万粎元。项目关账日为2021年4月30日。 2．会计核算原则 2.1本项目财务报表按照财政部《全球环境基金赠款管理办法》 （财国合〔2017〕33号）和《世界银行贷款项目会计核算力、法》（财 际字〔2000〕13号）的要求编制。 2.2本项目确认收支的原则为以实际收到的赠款收入确认为项目 收入，以实际发生的赠款支出确认为项目支出。采用借贷记账法进行 核算。记账本位币为美元。 2.3会计年度采用公历年制，即从公历每年1月1日起至12月 31日止。本期报表会计期间为2019年1月1日至2019年12月31 日。 10 2.4本项目财务报表采用的汇率说明：项目进度表2一1中项目总 计划额折算汇率采用世行项目评估文件中选择的汇率1美元二人民币 6.59元；其余报表折算采用的年初汇率为2018年12月28日汇率， 即1粎元＝人民币6.8632元，年末汇率为2019年12月31日汇率， 即1粎元＝人民币6.9762元。 3．报表编制范围 3.1本项目的财务报表由对外合作与交流中心编制。 3.2本期财务报表簖制范围包括：对外合作与交流中心的项目财 务报表及专用账户报表。对外合作与交流中心对报表的真实性、完整 性负责。 4．专用账户使用情况 本项目专用账户由对外合作与交流中心管理，账户于2016年7 月13日开立，账户设在民生银行北京金融街支行，账号697933 122, 币种为粎元。2m7年世界银行拨付首存款（即周转金额度）为 800 000.00粎元。专用账户期初余额635 841.47美元，本期世界银行 回补总额1 113955.56粎元，本期利息收入243.34美元，本期支出 1211298.77粎元，期末余额538741.60美元。 5．报表项目说明 5.1项目支出 截至2019年12月31日，本期项目支出合计人民币9 101 1 14.01 元，累计项目支出人民币13287659.68元。其中：编制国家战略及 行业和省市级履约实施计划本期支出人民币7837933,87元，累计支 出人民币10 898 094.64元；汞管理和风险评估能力建设本期支出人 民币1087061.50元，累计支出人民币19咒881.45元；项目管理本 期支出人民币176 1 18,64元，累计支出人民币416 683.59元。 5.2货币资金 截至2019年12月31日，项目货币资金余额人民币3 758 369．巧 元，其中：专用账户存款余额538 741.60美元，折合人民币3 758 369．巧 元。 l1 5.3拨入赠款 截至2019年12月31日，项目累计收到赠款2 247 595.73美元， 折合人民币15 679 677.33元。 5.4拨入配套资金 项目扼诺配套资金800万粎元，其中现金配套127万美元，实物 配套553万粎元，资产配套120万美元。对外合作与交流中心承诺配 套30万元，其中现金配套25万美元，实物配套5万元。本报表仅反 应对外合作与交流中心扼诺配套现金部分。截至2019年12月31日， 配套资金本期到位人民币360 070.00元，调减以前年度未使用配套资 金38 218.50元，累计到位人民币1 121 851.50元。 5.5应付款合计期末余额为人民币244 500.00元，包括对外合作 与交流中心垫付未回补金额人民币463 978.17元，对外合作与交流中 心本期回补收到的粎元金额与人民币支出之间的差异产生的汇兑损 失人民币225 221.％元，专用账户产生的利息为5 743.79元。 6．其他情况说明 6,1费用可追溯回补期为：2016年7月 22日至赠款协议签署日。 6.2本报表配套资金仅反映现金配套部分。 I2 vi. Notes to the Financial Statement NOTES TO THE FINANCIAL STATEMENTS 1. Introduction of the Project The project is GEF Capacity Strengthening for Implementation of Minainata Convention on Mercury Project. The Grant Agreement of GEF Capacity Strengthening for Implementation of Minamata Convention on Mercury Project (therefore abbr. GA) was signed by the Foreign Bank for Reconstruction and Development ( therefore abbr. WB )with the Ministry of Finance, People's Republic of China (therefore abbr. MOF) on November 14, 2016. An implementation agreement was signed between MOF and the Ministry of Ecology and Environment (therefore abbr. MEE) to cause Foreign Environi-nental Cooperation Center (therefore abbr. FECO) of MEE to be responsible for the use, management and supervision of the grant, and handle the procedures related to the grant. The objectives of the project are to develop a national strategy on mercury and related action plans, and to improve China's mercury management capacity and readiness to implement this strategy in the project provinces/cities. The main activities of the project include: to enhance the Convention implementation capacity of pilot provinces and the whole country through investigation, monitoring and strategy development, including sector-specific strategies and action plans and the national strategy and action plan, and activities in the pilot provinces and cities, including implementation of mercury flow reporting system, risk assessment of mercury contaminated sites, feasibility study on management and recycling technologies for mercury- containing waste, atmospheric mercury monitoring capacity building, and result dissemination. The total cost of the project is USD 16 000 000 (approximately RMB 105 440 000.00 yuan) with USD 8 000 000 grant from GEF and USD 8 000 000 of co-financing. The closing date of the project is April 3 0, 202 1. 13 2. Accounting Principle 2.1 The financial statements is prepared in accordance with the Accounting Principle of the Financial Management Guidelines of Projects Financed by GEF. (Caiguohe [2017]33) and Accounting Principle of the World Bank Loan Project (CaiJiZi [2000]13) from the Ministry of Finance. 2.2 Bookkeeping of the project is in conformity with the principle that the grant in the financial report is the grant which has been received by FECO and the expenditure in the financial report is the expenditure which has been disbursed by FECO. The debit/credit double entry bookkeeping system is applied for bookkeeping purpose. Currency unit for accounting is USD. 2.3 Accounting period is the Gregorian calendar, which is from January 1 to December 3 1. Financial Statement for the current accounting period is from January 1, 2019 to December 31, 2019. 2.4 The exchange rate defined in the Project Appraisal Document (PAD) (USD 1=RMB 6.59 yuan) is used as the reporting exchange rate in the Summary of Sources and Uses of Funds when calculating the total project cost (life of PAD), the beginning exchange rate used is the exchange rate as of December 28, 2018 (USD 1=RMB 6.8632 yuan) and the ending exchange rate used is the exchange rate as of December 31, 2019 (USD 1=RMB 6.9762 yuan) in other financial statements if mentioned. 3. Scope of the Consolidated Statements 3.1 The Financial Statement was prepared by FECO. 3.2 Consolidation scope of the financial statement covers the financial statements of FECO and special account statements. FECO is responsible for preparing the financial statements and summarizing financial statements and special account statements. FECO has the responsibility for the authenticity and integrity of its financial statements. 14 4. Notes to the Statement of Special Account The Special Account of the project was managed by FECO and set up in China Minsheng Banking Corporation, Beijing Finance Street Branch on July 13, 2016. The account number is 697933122, currency unit is USD. The amount advanced (namely turn-over fund) was USD 800 000.00, the opening balance was USD 635 841.47, the amount deposited by the WB was USD 1 113 955.56, interest income for current period was USD243.34, amount withdrawn from the Special Account was USD 1 211 298.77, the closing balance as of December 31, 2019 was USD 538 741.60. 5. Notes to the Item of Financial Statement 5.1 Project Expenditure As of December 31 2019, the current project expenditure is RMB 9 101 114.01yuan, and the accumulated project expenditure is RMB 13 287 659.68 yuan. The details are as following: the current payout for Development of National Strategy and Sectoral and Provincial Action Plans is RMB 7 837 933.87 yuan, and the accumulated payout is RMB 10 898 094.64yuan; the current payout for Capacity Strengthening for Mercury Management and Risk Assessment is RMB 1 087 061.50 yuan, and the accumulated payout is RMB 1 972 881.45 yuan; the current payout for project management is RMB 176 118.64 yuan, and the accumulated payout is RIB 416 683.59 yuan. 5.2 Cash and Bank The balance of Cash and Bank account is RMB 3 758 369.15 yuan as of December 31, 2019, which is the ending balance of Special Account is USD 538 741.60, approximately RMB 3 758 369.15 yuan. 5.3 Grant As of December 31, 2019, the accumulated grant received is USD 2 247 595.73 , approximately RMB15 679 677.33 yuan. 15 5.4 Co-financing fund The project's committed co-financing fund is 8 million US dollars, including 1.27 million US dollars in cash, 5.53 million US dollars in kind and 1.2 million US dollars in assets. FECO promised to provide 300 000 US dollars, including 250 000 US dollars in cash and 50 000 US dollars in kind. This report only shows the co-financing fund in cash promised by the FECO. The co-financing fund received is RMBl 121 851.50 yuan as of December 31 ,2019. For current period, co-financing fund received is RMB360 070.00 yuan, adjust and reduce unused co-financing fund of previous years RMB 38 218.50 yuan. 5.5 The ending balance of Payables is RMB 244 500.00 yuan, which includes that the prepaid cost incurred by FECO is RMB 463 978.17 yuan, the exchange rate gain is RMB 225 221.96 yuan due to the difference amount between the project expenditure in RMB and the grant received from the WB in USD, and the interest income of special account which is RMB 5 743.79 yuan. 6. Other Explanation for the Financial Statements 6.1 Eligible Expenditures on or after July 22, 2016 and prior to the date of the GA (November 14, 2016) can be retrospectively recorded as grant expenditure according to the GA. 6.2 The co-financing fund in this financial statement reflects the cash co-financing fund only. 16